Checking your credit score is something that should begin months before you start the car buying process. Why? Inaccuracies can sneak onto your credit profile that you are not aware of until you apply for credit and fixing errors can take up to three months to be removed.
Credit Monitoring can help protect your credit score and even your identity with the daily monitoring of all three credit bureaus while giving you alerts if there are changes to your credit that could affect your credit score.
There are several types of credit scores, but lenders often use the FICO score, which ranges from 300 to 850.
Your FICO score measures five key criteria and can vary slightly, based on which credit reporting agency issues the score. The information that shapes these criteria comes from your credit report and includes:
Have a credit score below 620? There are ways to improve your credit rating.The Better Business Bureau offers tips for improving your rating.
Start searching for inaccuracies: Look for accounts that do not belong to you, have been closed, or have incorrect limits and balances. If you discover inaccuracies, write to the reporting credit bureau and submit evidence to the contrary. By law, they must substantiate any claims.